Analyzing the Role of Circular Services in Revenue Generation in the Construction Industry: Evidence from Colombia

This study examines the role of circular services in generating economic value within the construction sector, focusing on firms belonging to the Sustainable Habitat Cluster in the Aburrá Valley, Colombia. The research analyzes how circular business model strengthening translates into economic outcomes through the implementation of circular service portfolios. Using a Partial Least Squares Structural Equation Modeling (PLS-SEM) approach, the study evaluates the relationships between circular business model capabilities, circular service implementation, and circular revenue generation. The results confirm a sequential mechanism linking strategic capabilities to economic outcomes, where strengthening circular business models significantly enhances the implementation of circular services, which in turn strongly predicts the generation of circular revenues. The findings indicate that circular strategic orientation is a necessary but insufficient condition for economic value creation, as monetization occurs only when circular principles are translated into concrete service offerings. The study highlights the central role of circular services as the operational bridge between strategic readiness and economic performance, contributing to the literature on circular business models and Product–Service Systems (PSS) by providing empirical evidence of how circular strategies translate into revenue generation within the built-environment sector.